A loss of $1,200 will be recognized when the asset is sold.
An asset that costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold?
Cost of asset = $18,800
Depreciation= $6,000
Asset value after depreciation= $18,800 - $6,000
= $12,800
Sold for the price = $11,600
Loss= $12,800- $11,600 =$1200
What is depreciation in accounting?
The accounting technique of spreading out the cost of a tangible item over its useful life is known as depreciation. The amount of depreciation shows how much of an asset's worth has been utilized. Purchasing assets over a predetermined length of time enable businesses to generate income from the assets they own.
Learn more about depreciation: https://brainly.com/question/18849296
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